Simpson Thacher is representing The Carlyle Group in the purchase of a 55 percent stake in Emerging Sovereign Group (ESG), a New York-based emerging markets equities and macroeconomic strategies investment manager, in exchange for cash, an ownership interest in Carlyle and performance-based contingent payments. ESG was established in 2002 by Kevin Kenny with an initial investment from Julian H. Robertson through Tiger Management. Tiger Management will maintain a significant investment in the ESG funds and an ownership interest in ESG post-closing. The transaction is expected to close by July 1, 2011.
Carlyle’s Global Market Strategies business comprises an array of long/short credit hedge funds, structured credit, mezzanine and distressed products – 39 funds with $20.6 billion in assets managed by 68 investment professionals in New York, Washington, DC, Los Angeles, Hong Kong and London as of December 31, 2010. The Carlyle Group is a global alternative asset manager with $106.7 billion of assets under management committed to 84 funds as of December 31, 2010. Carlyle invests across three segments - corporate private equity, real assets and global market strategies.
The Simpson Thacher team for the transaction includes: Gary Horowitz, Ed Chung, Tom Lamprecht, Scott Naturman, Andy Veit (M&A); Olga Gutman, Michael Sabin (Funds); John Creed, Sean Austin (Tax); Alvin Brown, Tyler Andersen (Executive Compensation and Employee Benefits); Mary Touchstone, Julia Gaffin (Banking and Credit); Josh Bonnie, Will Golden (Capital Markets and Securities); and Michael Naughton, William Kearney (HSR).